Msi Case In Background On Edgar's Day At Fair

August 14, 1997|By Rick Pearson and John Kass, Tribune Staff Writers.

SPRINGFIELD — It was Governor's Day at the Illinois State Fair on Wednesday, but it hasn't necessarily been the best of times for Gov. Jim Edgar's administration, thanks to the Management Services of Illinois Inc. trial going on across town in a federal courtroom.

While Edgar did the traditional GOP political meet-and-greet at the fairgrounds, watched harness races and pondered his political future, jurors were deliberating in the fraud and bribery trial involving top campaign contributors.

The closing statements of attorneys on both sides tried to leave jurors with the impression that administration higher-ups played key roles in the 1993 renegotiation of MSI's state contract, which prosecutors claim bilked taxpayers out of more than $7 million.

Now, with the jury entering a third day of deliberations on Thursday, speculation has already begun about the role the trial will play on the political future of the Republican incumbent.

As Edgar considers making an announcement as early as Wednesday on whether he will seek a third term or challenge for the U.S. Senate seat now held by Democrat Carol Moseley-Braun, he has downplayed the impact of the trial on that decision.

When asked to confirm the announcement date, the governor grinned and said: "I haven't said that publicly. Yet." And as to what his decision will be, Edgar insisted: "I haven't made up my mind yet."

On his day at the State Fair, Edgar said the news media were more interested in the MSI saga than the public has been, and opined his popularity with the voters is now "probably" higher than ever.

MSI, co-founders William Ladd and Michael Martin, and Ronald Lowder, a former Public Aid administrator who oversaw the firm's contract work, were being tried on charges the company used campaign contributions to Edgar and other politicians along with gifts, trips and dinners to Public Aid workers to buy influence and win the renegotiated contract.

In making their final pitch to jurors, prosecutors alleged that Edgar's Public Aid director, Robert Wright, and the governor's former deputy chief of staff, Michael Belletire, were "guilty too" if they authorized the controversial payments to the firm.

Neither has been charged with wrongdoing and neither was called to testify.

While the federal government maintains the case is still under investigation, there is little doubt that Edgar would be better off politically with an acquittal of the current defendants.

In that event, he might suffer some limited short-term damage by being the first sitting governor in 75 years to testify in a criminal trial. But if political opponents later tried to revisit the issue, he could pointedly note that a jury had determined that no crimes had been committed by his contributors.

More importantly for Edgar, an acquittal could discourage federal prosecutors from pursuing the MSI investigation and try to climb further up the ladder in his administration in search of criminal targets.

A guilty verdict would leave Edgar with what has been his stock response--that his administration initiated the investigation of MSI after it received an anonymous letter alleging wrongdoing. But it could also leave the administration potentially vulnerable to future revelations about alleged wrongdoing by higher-ups in the MSI contract.

Either way, some fresh allegations could emerge during the upcoming fraud trial of former Public Aid Deputy Director James Berger, who is being tried separately in the MSI case.

But for now, Edgar says he is not nervous about the outcome of the trial and as far as its effect on his standing among voters, "I don't see where it has hurt."

In the meantime, Edgar heard GOP county chairmen from across Illinois implore him to run for re-election to a third term at a closed door meeting during his visit to the fairgrounds.

"I haven't made the final decision, but they were pretty clear on what they wanted," Edgar said.

Other Republicans, whose ambitions are being bottled up by Edgar's consideration of his own future, had little to do at the fair Wednesday but wait, size each other up and eat each other's food at various lunches and ice cream socials.

"Don't you just love politics?," said Secretary of State George Ryan at his political barbecue, as state Treasurer Judy Baar Topinka prepared to play her accordion with a polka band from Cicero.

There was DuPage County Board Chairman Gayle Franzen, a surprise visitor to Ryan's luncheon, needling Comptroller Loleta Didrickson just by being there.

If Edgar decides to run for the Senate, and Ryan runs for governor, Ryan's old job will be open and both Didrickson and Franzen have made it clear they'd be interested in running for the post.

Didrickson, speaking about her feeling about Edgar's decision, said: "I think he'll run for re-election."

In what some viewed as a symbolic sign, Edgar took time to declare that Atty. Gen. Jim Ryan would be "a great" U.S. Senate candidate.

Ryan, who is battling cancer and the aftereffects of treatment, told county chairmen he was interested in the Senate post.